Facebook's ad incentives improve performance

Specifically, Facebook offered advertisers a cost-per-click discount of 45 percent during the fourth quarter of 2011 as long as user clicks were redirected to company Facebook pages or applications instead of their own, off-site websites.

"The potential cost savings available by maintaining traffic within the Facebook environment is particularly compelling and demonstrates its effectiveness as an advertising channel and also as a 'destination,'" said TBG CEO Simon Mansell.

ZDNet points to an example of a financial services firm which directs users back to their sites to complete transactions for sign up for some sort of bill pay. If that bank built a Facebook app that performed similar functions, it would save on advertising costs.

Researchers also found that over the course of the fourth quarter, cost per thousand impressions - the amount Facebook earns every time an ad is shown to a user - increased by an average of 8 percent. In total it earned 23 percent more in ad rates since 2011's first quarter, and saw ad performance improve by 18 percent.

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